The Palestinian parliament is to vote on Saturday on theformation of a unity government bringing together members of the rival Fatahand Hamas political factions.

Nabil Abu Rudeina, a spokesman for Mahmoud Abbas, the Palestinianpresident, said: "The government is now ready and its composition will beannounced on Thursday morning.

"On Saturday the government will likely be presented tothe legislative council."

Ghazi Hamad, a Hamas spokesman, said Ismael Haniya, who is set to retain thepost of prime minister in the new administration, has already asked parliamentto convene on Saturday to vote on the new cabinet.

The decision to set the date, after months of negotiationsand violence between the rival parties, was made at a meeting between Abbas andHaniya on Wednesday.

The two leaders met to put the finishing touches to the coalition agreement andagree a compromise on the candidate for the powerful interior ministry, whichhas been a major point of contention.

Interior ministry candidates

"Several names were presented to the president. He will choose one and letHaniya know his choice this evening," Abu Rudeina said.

They were eager to complete thetalks ahead of an Arab Summit set for later this month in Saudi Arabia.

Fatah and Hamas agreed at a summit in Mecca in February to forma unity government after months of feuding that has left dozens of Palestiniansdead.

Palestinians are hoping that the new coalitioncabinet will lead to an end of a US and EU-led boycott on thegovernment, which was introduced after Hamas assumed power last January and hasseverely damaged the Palestinian economy.

Under the terms of the power-sharing agreementreached in Saudi Arabia,Hamas will occupy nine cabinet seats, plus the premiership, and Fatahwill take six.

Hamas will nominate another three"independent" ministers and Fatah two.

The interior minister must be proposed by Hamas butapproved by the president